Mongolia

Coal production continues to rise in Mongolia amid the ongoing development of large mining projects aimed at increasing regional demand, yet the energy sector has also began exploring greener alternatives.

Underlining the rapid evolution under way in Mongolia's telecommunications sector, the state-run, land-line telecoms provider is cutting back while the main mobile players are introducing new features and announcing major international partnerships.

Momentum in Mongolia’s mineral sector helped GDP growth surge in 2011, however, extra fiscal vigilance is needed this election year as overheating could lead to high inflation, exchange rate volatility and wage pressures. According to World Bank estimates in late January, growth reached 14.9% in 2011 and will be 15.1% in 2013.

The real estate market in Mongolia is expected to expand significantly in the coming years, thanks in part to increasing incomes and rapid urbanisation created by the country’s mineral wealth. With the capital city expected to be home to more than half of the population by 2030, Ulaanbaatar will be the focus of this surge in real estate growth.

As Mongolia sits on the verge of a resource-related boom, government officials are stressing that the Human Development Fund (HDF) established to channel revenues from mining projects to health and education is fulfilling its role.

Last year saw the prospect of Mongolia’s vast untapped natural mineral wealth drive heady levels of investment and growth, with the government aiming to harness the momentum by diversifying the economy and improving infrastructure, employment and housing. However, Prime Minister S. Batbold’s administration will likely face political pressures over protecting the country's resources in the lead-up to this June’s election.